Financial Services Act 1986 (Restriction of Scope of Act and Meaning of Collective Investment Scheme) Order 1990
| Jurisdiction | UK Non-devolved |
1990 No. 349
FINANCIAL SERVICES
The Financial Services Act 1986 (Restriction of Scope of Act and Meaning of Collective Investment Scheme) Order 1990
Made 26th February 1990
Laid before Parliament 28th February 1990
Coming into force 26th March 1990
The Secretary of State, in exercise of the powers conferred on him by sections 2 and 75(9) of the Financial Services Act 19861and of all other powers enabling him in that behalf, hereby makes the following Order:
Citation, commencement and interpretation
1.—(1) This Order may be cited as the Financial Services Act 1986 (Restriction of Scope of Act and Meaning of Collective Investment Scheme) Order 1990 and shall come into force on 26th March 1990.
(2) In this Order, “the Act” means the Financial Services Act 1986.
National Savings
2.—(1) The following Note shall be added to paragraph 3 of Schedule 1 to the Act—
“3 This paragraph does not apply to any instrument creating or acknowledging indebtedness in respect of money received by the Director of Savings as deposits or otherwise in connection with the business of the National Savings Bank or in respect of money raised under the National Loans Act 19682under the auspices of the Director of Savings or in respect of money treated as having been so raised by virtue of section 11(3) of the National Debt Act 19723.”.
(2) Paragraph 9 of Schedule 1 to the Act shall be amended in the following manner—
(a)
(a) the word “Notes” shall be substituted for the word “Note.”;
(b)
(b) the existing Note shall be numbered (1); and
(c) the following Note shall be added—
S-2 “2 This paragraph does not apply to rights under any contract under which money is received by the Director of Savings as deposits or otherwise in connection with the business of the National Savings Bank or raised under the National Loans Act 1968 under the auspices of the Director of Savings or under which money raised is treated as having been so raised by virtue of section 11(3) of the National Debt Act 1972.”.
Dealings as principal
3. Paragraph 17(4) of Schedule 1 to the Act4shall be amended by deleting the words “, other than a transaction of a kind described in paragraph 3(a) or (b) above,”.
Sale of goods and supply of services
4. Paragraph 19 of Schedule 1 to the Act5shall be amended by the substitution, in paragraph 19(3)(b), of the figure “5” for the figure “6”.
Advice given in sound, television or cable programmes
5. For paragraph 25A of Schedule 1 to the Act6there shall be substituted—
“Advice given in sound, television or cable programmes
25A.—(1) Paragraph 15 above does not apply in respect of any advice given in any programme or teletext transmission—
(a)
(a) broadcast, or made for broadcasting, by the British Broadcasting Corporation or by the Independent Broadcasting Authority in accordance with the provisions of the Broadcasting Act 19817; or
(b)
(b) included, or made for inclusion, in a cable programme service which is, or does not require to be, licensed under the Cable and Broadcasting Act 19848; or
(c)
(c) broadcast, or made for broadcasting, by the Independent Broadcasting Authority in a DBS service.
(2) In this paragraph—
(a)
(a) “DBS service” has the same meaning as in section 37(3) of the Cable and Broadcasting Act 1984;
(b)
(b) “programme”, in relation to a television or sound broadcasting service or a cable programme service, includes an advertisement and any other item included in that service; and
(c)
(c) “teletext transmission” has the same meaning as in section 14(6) of the Broadcasting Act 1981 and includes any such transmission broadcast in a DBS service or in a service which is an additional teletext service within the meaning of section 47(2) of the Cable and Broadcasting Act 1984.”.
Amendment of section 75 of the Act
6. In section 75 of the Act—
(a) subsections (5A), (5B) and (6)(e) are hereby repealed9; and
(b) for paragraphs (l) to (n)10of subsection (6) there shall be substituted the following paragraph—
“(l)
“(l) arrangements which by virtue of paragraph 34 or 35 of Schedule 1 to this Act are not collective investment schemes for the purposes of that Schedule.”.
Collective Investment Schemes
7. In Schedule 1 to the Act after paragraph 33 there shall be added the following paragraphs—
“34.—(1) For the purposes of this Schedule arrangements are not a collective investment scheme if—
(a)
(a) the property to which the arrangements relate (other than cash awaiting investment) consists of shares;
(b)
(b) they constitute a complying fund;
(c)
(c) each participant is the owner of a part of the property to which the arrangements relate and, to the extent that his part of that property—
(i) comprises relevant shares of a class which are admitted to the Official List of any member State or to dealings on a recognised investment exchange, he is entitled to withdraw it at any time after the end of the period of five years beginning with the date on which the shares in question were issued;
(ii) comprises relevant shares which do not fall within sub-paragraph (i) above, he is entitled to withdraw it at any time after the end of the period of two years beginning with the date upon which the period referred to in sub-paragraph (i) above expired;
(iii) comprises any other shares, he is entitled to withdraw it at any time after the end of the period of six months beginning with the date upon which the shares in question ceased to be relevant shares; and
(iv) comprises cash which the operator has not agreed (conditionally or unconditionally) to apply in subscribing for shares, he is entitled to withdraw it at any time; and
(d)
(d) the arrangements would meet the conditions described in section 75(5)(c) of this Act were it not for the fact that the operator is entitled to exercise all or any of the rights conferred by shares included in the property to which the arrangements relate.
(2) For the purposes of this paragraph—
(a)
(a) “shares” means investments falling within paragraph 1 of this Schedule;
(b)
(b) shares shall be regarded as being relevant shares if and so long as they are shares in respect of which neither—
(i) a claim for relief made in accordance with section 306 of the Income and Corporation Taxes Act 198811has been disallowed; nor
(ii) an assessment has been made pursuant to section 307 of that Act...
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